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Market Closing Commentary

Benchmark indices opened with a strong gap-up on 25 May and maintained their positive momentum throughout the session, as optimism over progress in U.S.-Iran peace talks triggered a sharp correction in crude oil prices below $96 per barrel and supported a marginal recovery in the Indian Rupee. The positive global cues helped the Nifty close above the crucial 24,000 mark.

At close, the Sensex was up 1073.61 points or 1.42 percent at 76,488.96, and the Nifty was up 312.40 points or 1.32 percent at 24,031.70. On the sectoral front most of the sector traded in positive and contributed with major gain noted from Nifty PSU and PVT banks, Auto, Realty  major sector closed positive while the only laggard is noted in Nifty FMCG sector

Buying is noted across the market with broader market closed on a positive note with Nifty Midcap gained 0.94% whereas the Nifty Small cap advanced 1.37%.

Nifty Outlook                            

Index in the daily chart formed a strong bullish candlestick pattern with a higher high and higher low and a bullish gap below its base (23,835-23,922). The index in the process closed above the 20 & 50 days EMA highlighting positive bias.

The index has generated a breakout above the last 9 sessions broad trading range of 23,200-23,900 signaling strength. Index sustaining above the Monday’s gap area will keep the bias positive and will open further upside towards 24,200 and 24,600 in the coming sessions.

Index has immediate support at 23,600 levels while major support is placed at 23,200-23,000 being the confluence of the lower band of the 8th April bullish gap area and the 61.8% retracement of the previous pullback (22,182-24,601). The daily stochastic is in up trend thus supports the positive bias in the index.

Bank Nifty Outlook

Index in the daily chart formed a strong bullish candlestick pattern with a higher high and a higher low and a bullish gap below its base 54055-54590. The index in the process closed above the 20 & 50 days EMA highlighting positive bias.

The index has generated a breakout above the falling supply line joining the recent highs signaling strength. Index sustaining above the Monday’s gap area will keep the bias positive and will open further upside towards 56,000 and 56,600 levels in the coming sessions. Index has immediate support at 54,000 levels while major support is placed at 53,000-52,500 being the confluence of the lower band of the 8th April bullish gap area and the 61.8% retracement of the previous pullback (22,182-24,601). The daily stochastic is in uptrend thus supports the positive bias in the index.

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